In his response to Ford Motor Credit's law suit, Reagor-Dykes co-owner Rick Dykes accused the company's former chief financial officer of providing false information to FMC.

As reported earlier, Ford Credit commended Reagor-Dykes following its June audit. New details in this filing show the Auto Group's short-term indebtedness to Ford Credit was about $25 million as of the June audit. But, according to this filing, Ford Credit notified former R-D chief financial officer Shane Smith of irregularities it found in numbers supplied to Ford Credit. Dykes states neither he nor co-owner Bart Reagor were made aware of Ford Credit's impending July 26 on-site review; they were both out of town. According to Dykes' response, it was on that day Smith contacted Reagor and Dykes. They returned to Lubbock the next two days.

Ford Credit sued several Reagor-Dykes companies as well as co-owners Dykes and Reagor July 31, claiming $116 million owed with $41 million due now. The next day many, but not all, Reagor-Dykes companies filed for chapter 11 protection. Reagor and Dykes individually did not, though recent filings show both the co-owners and other R-D companies that did not file for chapter 11 may soon do so.

Dykes' response filed Thursday identifies Smith as chief financial officer of Reagor-Dykes Auto Group for the past 11 years. It states Reagor is CEO; Dykes had no day-to-day management position with the Auto Group. The response states Reagor and Dykes "relied on and trusted Mr. Smith to manage all material financial transactions of Reagor-Dykes Auto Group".

This filing states before working for Reagor-Dykes, Smith was an employee of Ford Credit. And, it claims since working for Reagor-Dykes, Smith maintained a "close professional and personal relationship with Gary Byrd, Jr., the Dallas Regional Manager of Ford Credit and the person primarily responsible for overseeing Ford Credit's financing of the Reagor-Dykes Auto Group. Mr. Byrd knew that Mr. Smith was responsible for managing the financial transactions between Reagor-Dykes Auto Group and Ford Credit and for reporting Reagor-Dykes Auto Group’s financial information to Ford Credit."

According to this new filing, while Reagor-Dykes companies were filing for bankruptcy protection Aug. 1, Smith "admitted that he had provided false financial information regarding the Reagor-Dykes dealerships to Ford Credit and Messrs. Dykes and Reagor. Upon learning of Mr. Smith’s disclosure, Reagor-Dykes Auto Group terminated Mr. Smith’s employment and referred Mr. Smith’s disclosure to the local United States Attorney’s office, which has commenced an investigation."

There is no record of any criminal charges filed against Smith.

This response to the suit states because of everything ongoing through bankruptcy court, there has not been adequate time for attorneys to determine questions regarding Ford Credit's suit. This includes, according to Dykes' response, "particularly the nature of Mr. Byrd’s relationship with Mr. Smith and Mr. Byrd’s knowledge and actions during the period in which Mr. Smith was providing false financial information to Ford Credit and Messrs. Dykes and Reagor."

Dykes states almost overnight, Ford Credit's lawsuit has bankrupted six dealerships, led to the loss of hundreds of jobs and the destruction of substantial wealth.

Senior U.S. District Judge Sam Cummings granted an extension for parties to respond to Ford Motor Credit's suit. That deadline is Friday.

Part of enjoying the holiday season includes making sure your car is secured. Nearly 25,000 vehicles were reported stolen nationwide during the holidays in 2016, according to the National Insurance Crime Bureau. Of those, about 2,300 were reported on Black Friday, alone. Jennifer Anderson, with the South Plains Auto Theft Task Force said there are many reasons why there is a spike in auto thefts during the holiday season. "When they are enjoying the...

Part of enjoying the holiday season includes making sure your car is secured. Nearly 25,000 vehicles were reported stolen nationwide during the holidays in 2016, according to the National Insurance Crime Bureau. Of those, about 2,300 were reported on Black Friday, alone. Jennifer Anderson, with the South Plains Auto Theft Task Force said there are many reasons why there is a spike in auto thefts during the holiday season. "When they are enjoying the...

(Billy Calzada/The San Antonio Express-News via AP). In this Saturday, Nov. 17, 2018, photo firefighters and investigators look over a vintage World War II P-51D Mustang aircraft after a deadly crash in Fredericksburg, Texas.

A group that organizes vintage fighter plane rides for veterans says a passenger who was killed when a World War II-era aircraft crashed in South Texas had been a WWII pilot.

A group that organizes vintage fighter plane rides for veterans says a passenger who was killed when a World War II-era aircraft crashed in South Texas had been a WWII pilot.

Open Door is thrilled to announce it has moved 40 chronically homeless individuals into Permanent Supportive Housing in part through its Housing program expansion. In partnership with landlords across the Lubbock community, Open Door has been able to place some of Lubbock’s most vulnerable people into the safety, stability, and civility of a home.

Open Door is thrilled to announce it has moved 40 chronically homeless individuals into Permanent Supportive Housing in part through its Housing program expansion. In partnership with landlords across the Lubbock community, Open Door has been able to place some of Lubbock’s most vulnerable people into the safety, stability, and civility of a home.

Lubbock Police Department crash investigators are currently on scene of a multiple vehicle crash at Quaker Avenue and South Loop 289. At this time it appears five vehicles have been involved in the crash and one person has been taken to the hospital with serious injuries.

Lubbock Police Department crash investigators are currently on scene of a multiple vehicle crash at Quaker Avenue and South Loop 289. At this time it appears five vehicles have been involved in the crash and one person has been taken to the hospital with serious injuries.

City of Lubbock offices will be closed Thursday, November 22 and Friday, November 23 in observance of the Thanksgiving holiday. Regular business hours will resume on Monday, November 26. Residential Regularly scheduled trash pickup will not occur Thursday, November 22 or Friday, November 23.

City of Lubbock offices will be closed Thursday, November 22 and Friday, November 23 in observance of the Thanksgiving holiday. Regular business hours will resume on Monday, November 26. Residential Regularly scheduled trash pickup will not occur Thursday, November 22 or Friday, November 23.